Journal of Faculty of Business Administration (JFBA), Part-C, Vol. 9, No.

1&2, July 2011-June 2012

The Role of Human Resource Management practices on Job Satisfaction and Organizational
Commitment in Banking Sector of Bangladesh- A Comparative Analysis

*Md. Mizanur Rahman

Lecturer, Department of Business Administration
Metropolitan University, Sylhet

**Mohammad Jamal Uddin

Assistant Professor
Department of Business Administration
Metropolitan University, Sylhet

***Mohammad Abdush Shaheed Mia

Associate Professor
Department of Accounting Information System
Islamic University, Kushtia

Abstract

The concept of job satisfaction and commitment in any workplace is still one of
the most challenging and researched concepts in the field of Human Resource
Management. This study aims at exploring the impact of HRM practices on job
satisfaction and organizational commitment at banking sector in Bangladesh.
Literature review revealed that the influencing factors relating to HRM practices
on job satisfaction and organizational commitment are job security, reward,
training and development, equity, attitude of the top management and work
autonomy, etc. A survey has been conducted among 1000 employees of different
private and public banks within the five divisions (Dhaka, Rajshahi, Chittagong,
Khulna and Sylhet) by using a structured questionnaire and analyzed them
objectively. To quantify those factors a five point rating “likert scale” has been
used in this paper. After tabulating the primary data the researchers conducted
various tests such as Chi- square test, ANOVA test and identified a number of key
findings as to the affect of HRM practices on Job satisfaction and Organizational
commitment at banking sector in Bangladesh. The result of the study showed that
there are positive relationships among specific human resource practices, job
satisfaction and Organizational Commitment in banking sector of Bangladesh.

Key Words: Human Resource Management, Job Satisfaction, Organizational Commitment,

Bank.

Journal of Faculty of Business Administration, Islamic University of Kushtia, Department of management.

Journal of Faculty of Business Administration (JFBA), Part-C, Vol. 9, No.1&2, July 2011-June 2012

Introduction
It is said to be that Human Resource (HR) are considered as the heart of an organization. The
performance of any organization specially in banking organization largely depends on the quality
and competence of its employees and it is possible through proper practices of HR. The impact
of Human Resource Management (HRM) practices popularly known as HR practices on
organizational performance and employee attitudes has been a leading area of research in the
developed world for years. (Delaney and Huselid, 1996, Hselid, 195, Katouand Budhwar, 2007
peterescu and Ximmns, 2008) [1].The success, survival and competing power of organizations
depend on the commitment of their members, supporting their individual developments and
ensure their participations. The purpose of this study is to gain a better understanding of the
relationships between job satisfactions, organizational commitment. . Job satisfaction is defined
by Ivancevich as an attitude that individuals have about their jobs and it is believed to be a result
of the perception of individuals of their jobs or it is defined by Greenberg that it is a person’s
positive or negative feelings about their jobs. In 1990, Allen and Meyer defined Organizational
Commitment as a bond or linking of the individual to the organization. Job satisfaction is
prerequisite for employee commitment to the organization. It is very important for management
to have knowledge about the ways the employees are committed to the organization. If the
employees are satisfied as well as well committed to the organization it helps to reduce the cost
of employee turnover, absenteeism, low productivity etc. Therefore this study attempts to add a
valued work to explain the causal relationship between HRM practices and employees’ affective,
normative and continuance commitment. It is very clear that the present banking environment is
very competitive and there are approximately fifty four local banks in Bangladesh. Most of these
banks are private commercial banks and specialized banks except for four nationalized
commercial banks. The efficiency of both private commercial banks and public commercial
banks highly depends on skilled manpower. To ensure the efficiency and retain the competitive
advantage, they need to design effective HR practices that encourage the high performance of
employees. So this study discusses some of the important fifteen factors which have relationship
with organizational commitment and job satisfaction may directly or indirectly influence the
commitment of employees to the organization. Banking sector has witnessed a rapid growth in
the last decade and because of this growth, the demand for experienced and skilled human
resource has increased many folds in this sector. For the same reason, recent academic researches
on HRM practices in Bangladesh also have focused on the banking sector.

Rational of the study

The impact of human resource management (HRM) practices popularly known as HR practices
on organizational performance and employee attitudes (Job Satisfaction and Organizational
Commitment) has been a leading area of research in the developed world for many years. But
surprisingly, very limited number of researches has been conducted on the effect of HR practices
on employee job satisfaction and organizational commitment in the context of developing
countries in general and Bangladesh in particular. Therefore, despite valuable contribution
supported by empirical evidence in this regard mostly from manufacturing companies in the
United States and the other developed countries, the above mentioned pertinent research gaps in
Bangladesh context after deep review of literature have led us to undertake this study. This study
has also been conducted to fill the existing research gap and to explore the relationship between
HR practices with job satisfaction and organizational commitment in the arena of banking sector
in Bangladesh.

Journal of Faculty of Business Administration, Islamic University of Kushtia, Department of management.

Journal of Faculty of Business Administration (JFBA), Part-C, Vol. 9, No.1&2, July 2011-June 2012

Literature Review
HRM practices have been defined in many ways. Schuler and Jackson (1987) defined HRM
practices as organizational activities that are directed at managing the pool of human resources
and ensuring that resources are employed towards the fulfillment of organizational goals. Delery
and Doty (1996) conceptualized HRM practices as a set of internally consistent policies and
practices designed and implemented to ensure that a firm's human capital contribute to the
achievement of its business objectives. Similarly, Dittmer (2002) viewed HRM practices as an
individual's perceptions of the extent of implementation of the strategies, plans, and programs
used to attract, motivate, develop, reward and retain the best people to meet organizational goals.
Building on the arguments given by these scholars, HRM practices comprise of specific
practices, formal policies, and philosophies that are designed to attract, develop, motivate and
retain employees who ensure the effective functioning and survival of the organization. Lee and
Lee (2007) said HRM practices on business specify training and development, teamwork,
compensation/incentive, HR planning, performance appraisal, and employee security help
improve firms’ business performance including employee’s productivity, product quality and
firm’s flexibility. Pfeffer identified (1994) HRM practices such as employee participation and
empowerment, job redesign; team-based production systems, extensive employee training and
performance-contingent incentive compensation are widely believed to improve the performance
of organizations.

Ray and Ray (2011) found in their research that factors like performance appraisal, participation
in decision making, training and development, empowerment, compensation influencing human
resource management( HR) practices have significant close association with job satisfaction
(Ting, 1997, Godard (2001, Steijn 2004). To make link among HR practice, Job satisfaction and
commitment Gould-William (2003) proof that use of specific HR practices like HR planning,
training and development, teamwork, compensation/incentive, performance appraisal, etc, in
local government organizations in the United Kingdom (UK) was associated with a greater
degree of job satisfaction, workplace trust, commitment, effort, and organizational performance
(Appelbaum, Bailey, Berg and Kalleberg, 2000). Miller and Monge (1986) mentioned HR
practice say employee participation has at least a moderately positive affect on job satisfaction
and productivity. He also reported a positive correlation between participation and job
satisfaction in studies conducted in organizational settings that incorporated measures of
multiple-issue participation (Wagner and Gooding, 1987). Smith and Brannick (1990) also
speculate that participation causes greater job satisfaction because the employee feels more
valued and trusted by management, and because the worker gains a better understanding of
management difficulties by dealing with some of the same problems. Mowday, Porter, & Steers
(1982) in their book mentioned that organizational commitment is considered to be a bond or
link of the individual to the organization. And also said organizational commitment is considered
as an affective or emotional attachment to the organization. Job commitment is considered as
dependent on job satisfaction. According to Abdullah et al, (2007), the higher the job
satisfaction, higher will be the commitment of employee and lower will be the rate of
absenteeism, turnover, inattention at work and termination. That is, there is a positive correlation
between job satisfaction and employee commitment.

Journal of Faculty of Business Administration, Islamic University of Kushtia, Department of management.

Journal of Faculty of Business Administration (JFBA), Part-C, Vol. 9, No.1&2, July 2011-June 2012

Organizations can adopt various HRM practices to enhance employee skills as well as motivate
them to work harder towards ensuring their commitment. The study conducted by Ambreen
(2011) mentioned that organizational HR practices are positively related with affective and
normative commitment. Kinnie, et al., (2005) said in a traditional employer-employee
relationship, employee perceptions of human resource (HR) practices of their employing
organization influence their commitment to the organization. Nasurdin M. A. et al., (2008)
surveyed a sample of 214 employees within the Malaysian manufacturing sector demonstrated
that HR practice like career development and performance appraisal have direct, positive and
significant relationships with organizational commitment. He also mentioned that employees'
perceptions of the extent of the HRM practices implemented by their organizations serve as
direct predictors of their commitment to those institutions. Ambreen (2011) concluded in his
study that organizational commitment is a result of a number of significant factors like job
satisfaction, work autonomy and locus of control which are positively related to the affective and
normative commitment. He also said Job satisfaction can be increased by implementing different
HR practices say pay plans, proper wage systems and offering rewards which ultimately would
raise commitment level.
The Present research study has tried to justify whether the findings observed in the above
literature review are relevant in the context of banking industry of Bangladesh. In addition, if the
statements are relevant, which categories of bank either public or private is more satisfied and
committed as a result of specific HR practices.

Objectives of the Study

The main purpose of the study was to identity the impact of HR practices on job satisfaction. In
order to emerge this objective, the following specific objectives were considered:
 Identify and focus on some of the contemporary issues in commitment research
particularly as it relates to HRM
 To statement the relationship among HRM practices , job satisfaction and organizational
commitment;
 To suggest some measures in order to improve the HRM practices of the selected banks.

Methodology of the Study

The research of the relationships among HR practice, job satisfaction and organizational
commitment is an exploratory type of study and hence required to collect data from desired field.
The total respondents of this research paper were the employees of banking sectors of
Bangladesh. To collect data a survey was conducted at several Public and private banks in
Dhaka, Sylhet, Chittagong, Rajahahi and Khulna divisions. A highly structured questionnaire
was used to conduct this research. The questionnaire was made on the basis of two parts (i)
General information on HR practices and (ii) Satisfaction level of banks employee. To collect the
data relating to general information on HR practices 15 factors had been identified and a five-
point “Likert type” scale was applied. The five-point scale indicated different values (2= strongly
satisfied, 1= satisfied, 0=neutral, -1=dissatisfied, and -2=strongly dissatisfied). The questionnaire
was pre-tested on the employees of some selected banks in Sylhet Metropolitan area. And
finally, data were collected from 1000 bank employees. In the research HR related factors ware
taken as independent variables which are associated with job satisfaction. Employee job
satisfaction and organizational commitment were taken as dependent variables. To satisfy
research motives one descriptive analysis and three hypotheses were developed and tested. The

Journal of Faculty of Business Administration, Islamic University of Kushtia, Department of management.

Journal of Faculty of Business Administration (JFBA), Part-C, Vol. 9, No.1&2, July 2011-June 2012

researchers also used secondary data like Books, journals and related web pages to construct
literature review and other theoretical base as required.

Hypothesis
This research study was conducted on to test the following hypothesis:

Hypothesis 1: The impact of HR practices on employee satisfaction is same (Rows).

Hypothesis 2: The job satisfaction is not effective for employee to create the organizational
commitment.
Hypothesis 3: There is no difference of job satisfaction between the employees of public banks
and private banks.

Conceptual Frame work of the Study:

Selected HR Practices
Recruitment and Selection
process
Motivation
Training and Development
Job security

Commitment
Organizational
Creativity and Innovation Affective Commitment
Job Satisfaction

Discipline
Employee Productivity Continuance Commitment
Promotional Opportunity
Normative commitment
Performance Management
Rewards, Benefits and Services
Manpower Planning
Attitude of top management
Compensation management
Working Environment.
Organizational Structure.
Figure: The Relationships among HR Practices, Job Satisfaction and Organizational
Commitment
HR Practices
Human Resource Management Practices have been changed dramatically during the last two
decades owing to globalization, privatization/deregulation, competition and technological
advancements. These highly turbulent environmental have forced organizations to adopt new
workplace practices that enhance employee satisfaction and commitment which in turn result
high level of job performance. The relationship between appropriate human resource
management practice and positive employee attitudes including employee satisfaction, loyalty
and productivity has been widely analyzed. It is also suggested that treating employees as a
valuable asset improves their commitment and loyalty which leads to higher performance and
quality (Silvestro, 2002). In the study HR practices are focused only 15 practices namely -
recruitment and selection process, motivation, training and development, job security, creativity

Journal of Faculty of Business Administration, Islamic University of Kushtia, Department of management.

Journal of Faculty of Business Administration (JFBA), Part-C, Vol. 9, No.1&2, July 2011-June 2012

and innovation, discipline, employee productivity, promotional opportunity, performance

management, rewards, benefits and services, manpower planning, attitude of top management,
compensation management, working environment, and organizational structure for realizing the
relation among organizational HR practices, job satisfaction and employee commitment.

Job Satisfaction
The concept of employee job satisfaction is a multi-dimensional and inter-disciplinary term that
has been attracted the attention of researchers and practitioners from different disciplines such as
psychology, human resource management, organizational behavior, TQM and so forth. In
literature there are a large number of studies that analyze the term from many different
perspectives and its relationship with various organizational variables (Lund, 2003). However
there is no universal definition of employee satisfaction that exposes all these dimensions at the
same time. Most of the definitions emphasize the importance of employees’ job-related
perceptions that link the expectations of them and what they receive in return. Locke, et. Al
(1969) describes job satisfaction a pleasurable or positive emotional state resulting from the
appraisal of one's job and job experiences. According to this, employee satisfaction is a “function
of the perceived relationship between what one wants from one’s job and what one perceives it
as offering” (Locke, 1969). Robbins (2010) in his book said Job satisfaction is a general attitude
of employees either favorable or unfavorable toward job. Job satisfaction is considered a
mediator between organizational HR practices and employee commitment. It is said employee
job satisfaction comes from satisfaction on organizational practices especially HR practices; and
employee commitment is a result of extreme level of employee job satisfaction. Job satisfaction
is dependent on many interrelated factors like personal factors of the person, socio-cultural
factors of environment, and organizational HR practices. Among these three factors HR practices
have primary influence to job satisfaction.
Job related HR practices or specific aspects of job are Manpower planning, job design, working
conditions, relations with co-workers, job-status, wage, fringe benefits, supervision, promotional
opportunities, job security, communication, organizational structure & climate, management
participation, leadership style, autonomy at work, work-schedule & nature of work, performance
management, rewords & recognition and so on.

Organizational Commitment
Commitment is defined generally as the relative strength of an individual’s identification with
and involvement in a particular organization. It can be characterized by at least three related
dimensions: “a strong belief in and acceptance of the organization’s goals and values; a
willingness to exert considerable effort on behalf of the organization; and a strong desire to
maintain membership in the organization” (Mowday et al., 1979, p.226). Further developing the
concept, Meyer and Allen (1984, 1991, and 1997) identified three salient dimensions of
employee commitment: affective, continuance and normative. Affective commitment describes
an individual’s desire to stay with the organization given her/his emotional attachment to, and
identification with the organization (Meyer & Allen, 1984, 1991). A high level of affective
commitment has been found to be related to low employee turnover, low absenteeism and
improved job performance (Meyer et al., 2002). Continuance commitment describes an
individual’s need to remain with the organization resulting from her/his recognition of the costs
(tenure, pay, benefits, vesting of pensions and family commitment, etc.) associated with leaving
the organization (Meyer & Allen, 1984, 1991). In contrast, normative commitment reflects an

Journal of Faculty of Business Administration, Islamic University of Kushtia, Department of management.

Journal of Faculty of Business Administration (JFBA), Part-C, Vol. 9, No.1&2, July 2011-June 2012

individual’s feeling of obligation to maintain organizational membership because he/she believes

it is morally right to be loyal to, and stay in, the organization.

Relationships among HR practices, Job Satisfaction and Organizational Commitment

Employee job satisfaction depends on many human resource factors instead of single one. It is difficult to
estimate employee job satisfaction on specific HR practices because organizational human resource
activities are changing continuously and job satisfaction is a person’s psychological matter. But employee
job satisfaction in organization is found in our research as closely associate with organizational human
resource activities. Job satisfaction is also linked with improved output and Organizational commitment.
There is no hesitation to say that organizational commitment directs by job satisfaction. In addition,
organizational HR practices directly can produce employee commitment with considering employee
satisfaction. For example, pay plans, equality treatment, transparency in promotion and wage systems and
offering rewards ultimately would raise commitment level. So we can say that job satisfaction and
organizational commitment are highly connected with organizational HR practices.

Analysis and Findings

Table No: 01: Comparison of satisfaction indicators among the respondents of banks
(Public Banks and Private Banks).

Selected HR Practices Public Banks Private Banks

Mean SD Mean SD
1 Recruitment and Selection process -0.10 1.13 1.18 0.98
2 Motivation 0.84 0.91 1.14 0.70
3 Training and Development 0.94 0.68 0.96 0.67
4 Job security 1.36 0.56 -0.18 1.20
5 Creativity and Innovation -0.68 0.98 -0.80 0.95
6 Discipline 1.12 0.85 1.28 0.57
7 Employee Productivity 0.98 0.55 1.20 0.70
8 Promotional Opportunity 1.34 0.59 1.30 0.58
9 Performance Management 0.96 0.49 1.20 0.76
10 Rewards, Benefits and Services 1.24 0.66 1.20 0.67
11 Manpower Planning -0.04 1.21 1.34 0.71
12 Attitude of top management 1.30 0.76 1.20 0.69
13 Compensation management 1.30 0.65 1.16 0.77
14 Working Environment. 0.86 0.61 1.22 0.65
15 Organizational Structure. 1.34 0.66 1.32 0.59
Summary 0.851 0.7526 0.9813 0.746

Journal of Faculty of Business Administration, Islamic University of Kushtia, Department of management.

Journal of Faculty of Business Administration (JFBA), Part-C, Vol. 9, No.1&2, July 2011-June 2012

Graphical Presentation of Employees satisfaction level of Public and Private Banks (Based
on Mean and Standard Deviation)

Graph No. 1: Mean satisfaction level on HR practice

Graph No. 2: Standard Deviation of satisfaction level on HR practice

The descriptive statistical table and Graphs show that employees of private banks are more
satisfied on HRM practices in compared to public banks. The researchers are not in a position to
generalize the result because the study covered only 1000 employees and the research result was
unduly affected by three variables extremely. These variables are Recruitment and Selection
process, Job security and Manpower Planning. Manpower planning system and Recruitment and
Selection process of private banks generate more satisfaction than public one. At the same time
their standard deviations also less than public banks that indicate the employees of private banks
are more satisfied on the Recruitment and Selection process than the employees of public banks.
On the other hand employees of public banks showed more satisfaction on job security than
private banks; even though, there is greater variability in the response of employees.
Analysis also indicates an interesting matter that the mean as well as standard deviation of
Creativity and Innovation shows almost same dissatisfaction for all two types of banks and the
employees of banks believe that they do not have enough opportunity to shows their Creativity
and Innovation. In case of Training and Development, reward and benefit services, compensation
management, Promotional Opportunity, Attitude of top management, organizational structure
showed about same level of positive satisfaction. Private Banks’ employees showed greater
consistency of satisfaction than public banks with regard to some HR practices such as
motivation, discipline, employee productivity, performance appraisal and working environment.

Journal of Faculty of Business Administration, Islamic University of Kushtia, Department of management.

Journal of Faculty of Business Administration (JFBA), Part-C, Vol. 9, No.1&2, July 2011-June 2012

Hypothesis 1: The impact of HR practices on employee satisfaction is same (Rows).

ANOVA Analysis for Public Banks

ANOVA
Source of Variation SS df MS F P-value F crit
Between Groups 2721.517 14 194.3941 323.5843 0 1.693092
Within Groups 4496.632 7485 0.600752

Total 7218.149 7499

ANOVA Analysis for Private Banks

ANOVA
Source of Variation SS df MS F P-value F crit
Between Groups 2650.587 14 189.3276 329.0418 0 1.693092
Within Groups 4306.8 7485 0.575391

Total 6957.387 7499

Hypothesis Testing: The impact of HR practices on employee satisfaction is same (Rows)

Since the calculated value of F (1.693) is greater than table value of F (1.00), so the null
hypothesis is rejected. So we conclude that the mean satisfaction of the respondents is not same.
That is the satisfaction level of the employees of private banks and public banks is different.
From the descriptive statistical analysis it is found that employees at private banks in general are
more satisfied on HR practices than the employees of public banks.

Hypothesis 2: The job satisfaction is not effective for employee to create the organizational
commitment.

Let us take the null hypothesis that job satisfaction is not effective for employee to create the
organizational commitment.

Commitment Vs Job satisfaction Public banks: B Private banks: b Total

Commitment (Not affect job satisfaction): 175 225 400
A
No commitment ( Affect job satisfaction): a 325 275 600
500 500 1000
Source: collected data through questionnaire.

Let us take the hypothesis that, Ho = There is no variability in the commitment between Public
and Private Banks employees due to Job satisfaction.

Journal of Faculty of Business Administration, Islamic University of Kushtia, Department of management.

Journal of Faculty of Business Administration (JFBA), Part-C, Vol. 9, No.1&2, July 2011-June 2012

On the basis of the hypothesis, the expected frequency corresponding to the number of
respondents’ commitment (not affected by job satisfaction) and Public Banks would:
Expectation of (AB) = ( A )  ( B ) when, A represents commitment (not affected by job
N
satisfaction) and B represents Public banks.
(400)  (500)
So, (A) = 400, (B) = 500 and (N) = 1000. Thus, Expectation of (AB) = = 200
1000
Observer Expected
Group frequency (Oij) frequency (Eij) Oij - Eij (Oij - Eij)2 (Oij - Eij)2 / Eij
AB 175 200 -25 625 3.125
Ab 225 200 25 625 3.125
aB 325 300 25 625 2.083
ab 275 300 -25 625 2.083

Now using expectation of (XY), we can write the table of expected values as follows:
2
(Oij - Eij)
Putting the calculated value in Chi-square formula, we get, X2 = 
Eij
= 10.41

Here, the degree of freedom = (r-1) (c-1) = (2-1) (2-1) = 1. The table value for 1 degree of
freedom at 5 percent level of significant is 3.841. The calculated value of X 2 = 10.41, that is
much higher than the table value. Thus the experiment doesn’t support the null hypothesis (Ho).
So it can be concluded, there is relationship between commitment and the variability of the job
satisfaction of employees (Public and Private Banks).

Hypothesis 3: There is no difference of job satisfaction between the employees of public banks
and private banks.

Types of Banks Mean Standard Deviation Sample Size

Private Banks 0.981 0.746 500
Public Banks 0.851 0.753 500

Ho: There is no difference of job satisfaction between the employees of private banks and public
banks.
Ho: µ1= µ2
Ha: µ1≠ µ2
As the sample size is large, we shall use Z- test for difference in means assuming the population
to be normal and shall work out the test statistic Z as under
Z= 2.89(by using the formula of Z)
As Ha is two-sided, we shall apply a two- tailed test for determining the rejection regions at 5
percent level of significance which come to as under, using normal curve area table

R: 2.89≥1.96

Journal of Faculty of Business Administration, Islamic University of Kushtia, Department of management.

Journal of Faculty of Business Administration (JFBA), Part-C, Vol. 9, No.1&2, July 2011-June 2012

Since our computed value of Z=2.89 is greater than critical value of Z=1.96 (5% level of
significant) reject our null hypothesis, and
We can conclude that there is significant difference of job satisfaction of employees between
private banks and public banks.

Direction for Further Research

The researchers are not in such a position to generalize the result because the study covered only
1000 employees of banks and used only some selected HR variables. A large sample would have
been more representative of the public and private banking sector. Furthermore, human resource
management includes a number of practices instead of 15 that were used in the study. So it is
desired to do further research on the same field using large sample size with wider ranges of HR
practices. In the study the researchers did not show any correlation among these three variables
in Bangladesh perspective but it is desired for further study to do so.

Conclusion and Recommendations

One major difference between public and the private sector seems to be the attention devoted to
the HR practices. Clearly, HRM is ‘big’ in business administration as is proved by the enormous
number of books and articles on HRM. HRM practices in the public sector are a bleak subject
compared to the attention devoted to it in the private sector. Organizational performance and
employee productivity at both public and private sectors largely depend on employee satisfaction
and their commitment. It is clear that, HR practices, job satisfaction and organizational
commitment are interrelated. These three important terminologies are very essential conditions
for the retention of employees, productivity and success of any organization especially in
banking organization. In the study determinants of job satisfaction relating to HR practices of
workers in the banking sector of Bangladesh have been analyzed. In this respect fifteen types of
independent HR related variables were discerned. Research result showed that in generally both
the public and private banks’ employees are moderately satisfied on their HR practices. But there
were some discrepancy over their satisfaction levels on some specific HR practices. Such
practice like job security, promotional opportunity, reward benefits & services, organizational
structure, attitude of top management and compensation management, etc. result comparatively
higher satisfaction among employees of public banks and on the other hand, manpower planning,
recruitment and selection process, motivation, working environment result higher degree of
satisfaction among employees of private banks.The analysis also revealed that, none of the two
banks’ employees were highly satisfied on their respective HR practices. Since employee
retention and productivity is highly related with organizational commitment which in turn related
with job satisfaction, so concerned banks authority should give more attention on raising
employee job satisfaction and organizational commitment by effective design and
implementation of human resource functions. Concern public banks’ authority should be
consistent in manpower planning; transparent in recruitment & selection; and develop a
congenial working environment for employees’ satisfaction and commitment. Though employees
of private banks were more satisfied on HR practices but they are not feeling get security about
the jobs. So the authority should design several steps and devices to bring a sense of job security
among employees for their satisfaction and commitment.

Journal of Faculty of Business Administration, Islamic University of Kushtia, Department of management.

Journal of Faculty of Business Administration (JFBA), Part-C, Vol. 9, No.1&2, July 2011-June 2012

References

1. Abdullah, MA, Shuib, M, Muhammad, Z, Khalid, HN, Nor, MN & Jauhar, J (2007),
'Employee Organisational Commitment In Smes: Evidence From The Manufacturing
Sector In Malaysia', International Review of Business Research Papers, vol 3, no. 2,
pp. 12-26.
2. Ambreen M. (2011), Impact of Implied Organizational Support on Organizational
Commitment, European Journal of Business and Management, Vol 3, No.11, ISSN
2222-1905 (Paper) ISSN 2222-2839 (Online) 2011
3. Ambreen M. (2011), Impact of Implied Organizational Support on Organizational
Commitment, European Journal of Business and Management, Vol 3, No.11, ISSN
2222-1905 (Paper) ISSN 2222-2839 (Online) 2011
4. Appellabum E., Bailey T., Berg P. and Kalleberg A., (2000) Manufacturing
advantage: Why highperformance work systems pay off. Ithaca, NY: Cornell
University Press.
5. Delery, J. E., & Doty, D. H. (1996). Modes of theorizing in strategic human resource
management: Tests of universalistic, contingency, and configurationally performance
predictions. Academy of Management Journal, 39(4), 802–835
6. Delaney, J.T. Huselid, M.A, impact of human resource management practices on
perceptions of organizational performance. The Academy of Management Journal,
Vol.3, No.4, pp. 949-969, 1996
7. Dittmer, P. R. (2002). Dimensions of the Hospitality Industry, 3rd ed. New York:
John Wiley & Sons.
8. Godard (2001), High Performance and the Transformation of Work? The
Implications of Alternative Work Practices for the Experience and Outcomes of
Work. Industrial and Labor Relations Review, vol.54, no.4, pp776-805.
9. Ivancevich, J. M. and Matteson, M. T. (1990), Organizational Behavior and
Management, Second Edition, Boston: BPI Irwin.
10. Kinnie, N., Hutchinson, S., Purcell, J., Rayton, B. & Swart, J. (2005), “Satisfaction
with HR practices and commitment to the organisation: why one size does not fit all”,
Human Resource Management Journal, Vol.15, pp.9-29.
11. Lee, F-H. & Lee, F-Z. (2007). The relationships between HRM practices, Leadership
style, competitive strategy and business performance in Taiwanese steel industry,
Proceedings of the 13th Asia Pacific Management Conference, Melbourne, Australia,
2007, 953-971.
12. Locke E.A., (1969), What is job satisfaction? Organizational Behaviour and Human
Performance, vol.41, no.4, pp309-36.
13. Lund D., (2003), "How to analyze the investment–uncertainty relationship in real
option models?," EPRU Working Paper Series 03-17, Economic Policy Research
Unit (EPRU), University of Copenhagen. Department of Economics.
14. Miller, K. & Monge, P. (1986). Participation, Satisfaction and Productivity: A Meta-
analytic Review, Academy of Management Journal, Vol 29, pp 727-753.
http://dx.doi.org/10.2307/255942
15. Mowday, R. T., Steers, R.M. & Porter, L. W. (1979), “The measurement of
organizational commitment”, Journal of Vocational Behaviour, Vol. 14, pp.224-247.

Journal of Faculty of Business Administration, Islamic University of Kushtia, Department of management.

Journal of Faculty of Business Administration (JFBA), Part-C, Vol. 9, No.1&2, July 2011-June 2012

16. Meyer, J. P. & Allen, N. J. (1984), “Testing the “Side-Bet Theory” of organizational
commitment: some methodological considerations”, Journal of Applied Psychology,
Vol. 69, pp.372-378.
17. Meyer, J. P. & Allen, N. J. (1991), “A three-component conceptualization of
organizational commitment”, Human Resource Management Review, Vol. 1, pp.61-
89.
18. Meyer, J. P. and Allen, N. J. (1993), A Three Component Conceptualizaiton of
Organizational Commitment, Human Resource Management Review, 1, 61-98.
19. Meyer, J.P. and Allen, N.J. (1997) Commitment in the Workplace: Theory, Research,
and Application. Thousand Oaks, CA: Sage
20. Meyer, J. P., Stanley, D. J., Herscovitch, L. & Topolnytsky, L. (2002), “Affective,
continuance and normative commitment to the organization: a meta-analysis of
antecedents, correlates, and consequences”, Journal of Vocational Behaviour, Vol.
61, pp.20-52.
21. Mowday, R. T., Porter, L. W., & Steers, R. M. (1982). Employee-Organization
Linkages: The Psychology of Commitment, Absenteeism, and Turnover. New York:
Academic Press.
22. Nasurdin M. A., Hemdi M. A.and Guat L.P.(2008). Does perceived organizational
support mediate the relationship between human Resource management practices and
organizational commitment? Asian Academy of Management Journal, Vol. 13, No. 1,
January, PP. 15–36.
23. Pfeffer, J. (1994). Competitive advantage through people: Unleashing the power of
the work force, Boston, Harvard Business School Press
24. Ray S. and Ray I. A. ( 2011). Human Resource Management Practices and Its Effect
on Employees’ Job Satisfaction: A Study on Selected Small and Medium Sized Iron
&Steel Firms in India, Public Policy and Administration Research, Vol.1, No.1, ISSN
2224-5731(Paper) ISSN 2225-0972(Online
25. Schuler, R., & Jackson, S. (1987). Linking competitive strategies and human resource
management practices. Academy of Management Executive, 1(3), 207–229.
26. Silvestro R.,(2002), Dispelling the modern myth: Employees satisfaction and loyalty
drive service profitability, International Journal of Service industry management,
vol.22, no.1.
27. Smith, C. S. & Brannick, M. T. (1990). A role and expectancy model of participative
decision-making. A replication and theoretical extension, Journal of Organizational
Behaviour, Vol. 11, pp. 91-104.
28. Steijn ,B(2004), Human resource management and job satisfaction in the Dutch
public sector. Review of Public Personnel Administration, Vol.24, No.4, pp. 291-303.
29. Ting,Y(1997),Determinants of job satisfaction of Federal Government Employees,
Public Personnel Management, Vol.26, No.3, pp. 313-334.
30. Wagner, J. A. & Gooding, R. Z. (1987). Shared influence and organizational
behaviour: A meta-analysis of situational variables expected to moderate
participation-outcome relationships, Academy of Management Journal, Vol. 30, No.
3, pp 524-541. http://dx.doi.org/10.2307/256012

Journal of Faculty of Business Administration, Islamic University of Kushtia, Department of management.